                        TITLE 19--CUSTOMS DUTIES
 
                      CHAPTER 12--TRADE ACT OF 1974
 
      SUBCHAPTER IV--TRADE RELATIONS WITH COUNTRIES NOT RECEIVING 
                       NONDISCRIMINATORY TREATMENT
 
  Part 2--Relief From Market Disruption to Industries and Diversion of 
                    Trade to the United States Market
 
Sec. 2451a. Action in response to trade diversion


(a) Monitoring by Customs Service

    In any case in which a WTO member other than the United States 
requests consultations with the People's Republic of China under the 
product-specific safeguard provision of the Protocol of Accession of the 
People's Republic of China to the World Trade Organization, the Trade 
Representative shall inform the United States Customs Service, which 
shall monitor imports into the United States of those products of 
Chinese origin that are the subject of the consultation request. Data 
from such monitoring shall promptly be made available to the Commission 
upon request by the Commission.

(b) Initiation of investigation

    (1) Upon the filing of a petition by an entity described in section 
2252(a) of this title, upon the request of the President or the Trade 
Representative, upon resolution of either of the Committees, or on its 
own motion, the Commission shall promptly make an investigation to 
determine whether an action described in subsection (c) of this section 
has caused, or threatens to cause, a significant diversion of trade into 
the domestic market of the United States.
    (2) The Commission shall publish notice of the commencement of any 
proceeding under this subsection in the Federal Register and shall, 
within a reasonable time thereafter, hold public hearings at which the 
Commission shall afford interested parties an opportunity to be present, 
to present evidence, to respond to the presentations of other parties, 
and otherwise to be heard.
    (3) The provisions of subsections (a)(8) and (i) of section 2252 of 
this title, relating to treatment of confidential business information, 
shall apply to investigations conducted under this section.

(c) Actions described

    An action is described in this subsection if it is an action--
        (1) by the People's Republic of China to prevent or remedy 
    market disruption in a WTO member other than the United States;
        (2) by a WTO member other than the United States to withdraw 
    concessions under the WTO Agreement or otherwise to limit imports to 
    prevent or remedy market disruption;
        (3) by a WTO member other than the United States to apply a 
    provisional safeguard within the meaning of the product-specific 
    safeguard provision of the Protocol of Accession of the People's 
    Republic of China to the WTO; or
        (4) any combination of actions described in paragraphs (1) 
    through (3).

(d) Basis for determination of significant diversion

    (1) In determining whether significant diversion or the threat 
thereof exists for purposes of this section, the Commission shall take 
into account, to the extent such evidence is reasonably available--
        (A) the monitoring conducted under subsection (a) of this 
    section;
        (B) the actual or imminent increase in United States market 
    share held by such imports from the People's Republic of China;
        (C) the actual or imminent increase in volume of such imports 
    into the United States;
        (D) the nature and extent of the action taken or proposed by the 
    WTO member concerned;
        (E) the extent of exports from the People's Republic of China to 
    that WTO member and to the United States;
        (F) the actual or imminent changes in exports to that WTO member 
    due to the action taken or proposed;
        (G) the actual or imminent diversion of exports from the 
    People's Republic of China to countries other than the United 
    States;
        (H) cyclical or seasonal trends in import volumes into the 
    United States of the products at issue; and
        (I) conditions of demand and supply in the United States market 
    for the products at issue.

The presence or absence of any factor under any of subparagraphs (A) 
through (I) is not necessarily dispositive of whether a significant 
diversion of trade or the threat thereof exists.
    (2) For purposes of making its determination, the Commission shall 
examine changes in imports into the United States from the People's 
Republic of China since the time that the WTO member commenced the 
investigation that led to a request for consultations described in 
subsection (a) of this section.
    (3) If more than one action by a WTO member or WTO members against a 
particular product is identified in the petition, request, or resolution 
under subsection (b) of this section or during the investigation, the 
Commission may cumulatively assess the actual or likely effects of such 
actions jointly in determining whether a significant diversion of trade 
or threat thereof exists.

(e) Commission determination; agreement authority

    (1) The Commission shall make and transmit to the President and the 
Trade Representative its determination under subsection (b) of this 
section at the earliest practicable time, but in no case later than 45 
days after the date on which the petition is filed, the request or 
resolution is received, or the motion is adopted, under subsection (b) 
of this section. If the Commissioners voting are equally divided with 
respect to its determination, then the determination agreed upon by 
either group of Commissioners may be considered by the President and the 
Trade Representative as the determination of the Commission.
    (2) The Trade Representative is authorized to enter into agreements 
with the People's Republic of China or the other WTO members concerned 
to take such action as necessary to prevent or remedy significant trade 
diversion or threat thereof into the domestic market of the United 
States, and should seek to conclude such agreements before the 
expiration of the 60-day consultation period provided for under the 
product-specific safeguard provision of the Protocol of Accession of the 
People's Republic of China to the WTO, which shall commence not later 
than 5 days after the Trade Representative receives an affirmative 
determination provided for in paragraph (1) or a determination which the 
Trade Representative considers to be an affirmative determination 
pursuant to paragraph (1).
    (3) Report by Commission.--
        (A) Not later than 10 days after a determination under 
    subsection (b) of this section,\1\ is made, the Commission shall 
    transmit a report to the President and the Trade Representative.
---------------------------------------------------------------------------
    \1\ So in original. The comma probably should not appear.
---------------------------------------------------------------------------
        (B) The Commission shall include in the report required under 
    subparagraph (A) the following:
            (i) The determination made under subsection (b) of this 
        section and an explanation of the basis for the determination.
            (ii) If the determination under subsection (b) of this 
        section is affirmative, or may be considered by the President or 
        the Trade Representative as affirmative under subsection (e)(1) 
        of this section, the recommendations of the Commission on 
        increased tariffs or other import restrictions to be imposed to 
        prevent or remedy the trade diversion or threat thereof, and 
        explanations of the bases for such recommendations. Only those 
        members of the Commission who agreed to the affirmative 
        determination under subsection (b) of this section are eligible 
        to vote on the proposed action to prevent or remedy the trade 
        diversion or threat thereof.
            (iii) Any dissenting or separate views by members of the 
        Commission regarding the determination and any recommendation 
        referred to in clauses (i) and (ii).
            (iv) A description of--
                (I) the short- and long-term effects that implementation 
            of the action recommended under clause (ii) is likely to 
            have on the petitioning domestic industry, on other domestic 
            industries, and on consumers; and
                (II) the short- and long-term effects of not taking the 
            recommended action on the petitioning domestic industry, its 
            workers and the communities where production facilities of 
            such industry are located, and on other domestic industries.

        (C) The Commission, after submitting a report to the President 
    under subparagraph (A), shall promptly make it available to the 
    public (with the exception of confidential business information) and 
    cause a summary thereof to be published in the Federal Register.

(f) Public comment

    If consultations fail to lead to an agreement with the People's 
Republic of China or the WTO member concerned within 60 days, the Trade 
Representative shall promptly publish notice in the Federal Register of 
any proposed action to prevent or remedy the trade diversion, and 
provide an opportunity for interested persons to present views and 
evidence on whether the proposed action is in the public interest.

(g) Recommendation to the President

    Within 20 days after the end of consultations pursuant to subsection 
(e) of this section, the Trade Representative shall make a 
recommendation to the President on what action, if any, should be taken 
to prevent or remedy the trade diversion or threat thereof.

(h) Presidential action

    Within 20 days after receipt of the recommendation from the Trade 
Representative, the President shall determine what action to take to 
prevent or remedy the trade diversion or threat thereof.

(i) Duration of action

    Action taken under subsection (h) of this section shall be 
terminated not later than 30 days after expiration of the action taken 
by the WTO member or members involved against imports from the People's 
Republic of China.

(j) Review of circumstances

    (1) \1\ The Commission shall review the continued need for action 
taken under subsection (h) of this section if the WTO member or members 
involved notify the Committee on Safeguards of the WTO of any 
modification in the action taken by them against the People's Republic 
of China pursuant to consultation referred to in subsection (a) of this 
section. The Commission shall, not later than 60 days after such 
notification, determine whether a significant diversion of trade 
continues to exist and report its determination to the President. The 
President shall determine, within 15 days after receiving the 
Commission's report, whether to modify, withdraw, or keep in place the 
action taken under subsection (h) of this section.
---------------------------------------------------------------------------
    \1\ So in original. No par. (2) has been enacted.
---------------------------------------------------------------------------

(Pub. L. 93-618, title IV, Sec. 422, as added Pub. L. 106-286, div. A, 
title I, Sec. 103(a)(3), Oct. 10, 2000, 114 Stat. 887.)

                  Section Referred to in Other Sections

    This section is referred to in section 2451b of this title.
